The week that was:
The statement from the last FOMC meeting wasnt much of a change. The fed stuck to keeping the rates low for “extended period”. But how “extended” is “extended” – now that’s anybody’s guess!
- Freddie Mac’s weekly Primary Mortgage Market Survey reported 30-year fixed-rate mortgage (FRM) averaged 4.94 percent with an average 0.7 point for the week ending December 17, 2009, up from last week when it averaged 4.81 percent. Last year at this time, the 30-year FRM averaged 5.19 percent.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.37 percent this week, with an average 0.6 point, up from last week when it averaged 4.26 percent. year ago, the 5-year ARM averaged 5.60 percent.
- The median price paid for a Bay Area home rose above the year-ago level for the second consecutive month, a reflection of widening price stability, fewer foreclosures selling and more activity in pricier areas. Sales were higher than a year earlier for the 15th consecutive month. The median price paid for all new and resale houses and condos that closed escrow in the nine-county Bay Area last month was $387,000. That was up 10.6 percent from $350,000 in November 2008, according to MDA DataQuick of San Diego.
The week that will be:
This is Christmas Week, the bond market will close at 2:00 on Thursday and all markets will be closed Friday. Trading volume will lessen as the week rolls on; by Wednesday afternoon only skeleton crews will man trading desks. Nonetheless, there is a lot of data this week:
- Existing and new home sales.
- Nov personal income and spending.
- Nov durable goods orders and weekly jobless claims.
These next two weeks are always tricky, potential of wide swings, but normally at the end of it the rate markets are generally unchanged in the period.
Merry Christmas from Arcus Lending 🙂
Read Last week Mortgage Market commentary Here – Weekly Mortgage Market Commentary 12/13/2009